iRhythm Technologies (NASDAQ:IRTC) vs. Vapotherm (NYSE:VAPO) Head-To-Head Analysis

iRhythm Technologies (NASDAQ:IRTC) and Vapotherm (NYSE:VAPO) are both medical companies, but which is the better stock? We will compare the two companies based on the strength of their valuation, profitability, institutional ownership, earnings, dividends, risk and analyst recommendations.

Volatility and Risk

iRhythm Technologies has a beta of 1.25, suggesting that its share price is 25% more volatile than the S&P 500. Comparatively, Vapotherm has a beta of -1.1, suggesting that its share price is 210% less volatile than the S&P 500.

Valuation & Earnings

This table compares iRhythm Technologies and Vapotherm’s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
iRhythm Technologies	$537.09 million	3.89	-$123.41 million	($4.23)	-15.89
Vapotherm	$68.67 million	0.20	-$58.19 million	($8.61)	-0.25

Vapotherm has lower revenue, but higher earnings than iRhythm Technologies. iRhythm Technologies is trading at a lower price-to-earnings ratio than Vapotherm, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

43.1% of Vapotherm shares are owned by institutional investors. 0.7% of iRhythm Technologies shares are owned by insiders. Comparatively, 15.8% of Vapotherm shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of current ratings and target prices for iRhythm Technologies and Vapotherm, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
iRhythm Technologies	0	0	9	0	3.00
Vapotherm	0	0	0	0	N/A

iRhythm Technologies presently has a consensus target price of $118.67, suggesting a potential upside of 76.59%. Given iRhythm Technologies’ higher probable upside, analysts clearly believe iRhythm Technologies is more favorable than Vapotherm.

Profitability

This table compares iRhythm Technologies and Vapotherm’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
iRhythm Technologies	-24.50%	-84.14%	-19.29%
Vapotherm	-76.74%	N/A	-68.08%

Summary

iRhythm Technologies beats Vapotherm on 8 of the 13 factors compared between the two stocks.

About iRhythm Technologies

iRhythm Technologies, Inc., a digital healthcare company, engages in the design, development, and commercialization of device-based technology to provide ambulatory cardiac monitoring services to diagnose arrhythmias in the United States. It offers Zio services, an ambulatory monitoring solution, including long-term and short-term continuous monitoring and mobile cardiac telemetry monitoring services. The company also provides the Zio Monitor System, a prescription-only, remote electrocardiogram (ECG) monitoring system that consists of a patch ECG monitor that records the electric signal from the heart continuously for up to 14 days and the Zio ECG Utilization Software System, which supports the capture and analysis of ECG data recorded by the Zio Monitor patch at the end of the wear period, including specific arrhythmia events detected by the ZEUS System; the Zio XT System is the previous generation of the Zio Monitor System and is a prescription-only, remote ECG monitoring system that consists of the Zio XT patch that records the electric signal from the heart continuously for up to 14 days; and the Zio AT system, a prescription-only, remote ECG monitoring system that similarly consists of the Zio AT patch that records the electric signal from the heart continuously for up to 14 days and the ZEUS System, but which also incorporates the Zio AT wireless gateway that provides connectivity between the Zio AT patch and the ZEUS System during the patient wear period. It has a development collaboration agreement with Verily Life Sciences LLC and Verity Ireland Limited to develop various next-generation atrial fibrillation screening, detection, or monitoring products. The company was incorporated in 2006 and is headquartered in San Francisco, California.

About Vapotherm

Vapotherm, Inc., a medical technology company, focuses on the development and commercialization of proprietary high velocity therapy products used to treat patients of various ages suffering from respiratory distress in the United States and internationally. The company offers High Velocity Therapy systems, such as HVT 2.0, Precision Flow Hi-VNI, Precision Flow Plus, and Precision Flow Classic which delivers non-invasive ventilatory support to patients by providing heated, humidified, and oxygenated air at a high velocity to treat patients through a small-bore nasal interface. It also provides companion products, including Vapotherm Transfer Unit, which allows patients to be transferred between care areas within the hospital or ambulate while on therapy; Q50 compressor that provides compressed air necessary to run the precision flow systems in areas of the hospital without access to a wall gas source; aerosol aeroneb adaptor to facilitate delivery of aerosolized solutions; aerosol disposable patient circuit that is designed to streamline the provision of continuous and intermittent delivery of aerosol solutions for patients; and tracheostomy adaptors that simplifies the connection of the High Velocity Therapy systems to a tracheostomy collar used to wean patients off mechanical ventilation. In addition, the company offers ProSoft cannula to provide gentle contact with the skin; and disposable products comprising single-use disposables and nasal interfaces, as well as Oxygen Assist Module, which helps clinicians maintain oxygen levels within a target range. Vapotherm, Inc. was founded in 1993 and is headquartered in Exeter, New Hampshire.